• Journal of the Korean Society of Costume
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• v.54 no.6
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• pp.1-12
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• 2004

Price is one of the most important components of marketing mix. For consumers, price is an always-existing cue and definite evaluation criteria. However, information on price is meaningful only when it is perceived. Sources of price perception can be the actual retail price at the selling point, the internal reference price expected by consumers for a certain clothing product, and the external reference price advertised by marketer such as the price before mark-down. The purpose of this study was to investigate the influence of internal reference price on consumers' purchasing process of clothing products. A questionnaire including clothing stimuli was developed in order to assess consumers' internal reference price level. Usable data from 680 adult female urban residents were used for data analysis. Results indicated that consumers with relatively lower internal reference price tend to react low-price focused external reference price and use discount stores and unit price promotions. Consumers with relatively higher internal reference price advertisement are likely to have higher level of education, tend to infer price information to higher quality or prestige of products, and purchase clothing with regular retail price or coupons.

• Journal of the Korean Society of Clothing and Textiles
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• v.37 no.5
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• pp.645-654
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• 2013

This study investigated the difference of reference price, preference and quality perception of high functional underwear according to innovation cues. High functional underwear was selected as a research stimulus due to its technological innovative characteristics. A total of 93 male university students participated as subjects and data were collected by simple random experimental design operationalized with three types of innovation stimulus cues. Two types of internal reference price perception-expected price and fair price, preference, and 9 items of product quality perception-8 functional properties and overall quality of stimulus were measured with a questionnaire. The result supported the difference of reference price and quality perception by product innovation cue. The higher cue level group perceived two types of reference price and the overall quality higher than the lower cue level group. The difference of the expected price and fair price, the influence of functional properties on overall quality, and relations of the variables were discussed in depth.

• The Journal of the Korea Contents Association
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• v.8 no.9
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• pp.124-132
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• 2008

Price is an important marketing issue in current competitive environment characterized by various distribution channels such as economic circumstance and the Internet. Many companies, for their best profits, use a price discrimination strategy such as price discount that reinforces consumer's purchasing behavior and they employ advertising strategy by presenting reference price with information of price discount in advertisements. Accordingly, many research verifies the advertising effects of presented reference price in advertisements, this study tries to expand the existing study area which is limited on reference price of product by examining the its effects on service area. It also aims to verify the effects of reference price advertisements by the level of service reputation. For this experiment, a factorial design with service reputation and presented method of reference pricewas used. The result of this study is that attitude toward price and use intention on presented reference price in service advertisements are higher than not presented it. In the case of high service reputation, advertising effect on presented reference price in service advertisements are greater than presented price discount rates in service advertisements. And in the case of low service reputation, advertising effects can be much greater by just presented reference price in service advertisements. Therefore, in service advertisements, strategic views on presented methods of reference price by the level of service reputation are essentially needed.

• Culinary science and hospitality research
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• v.13 no.2
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• pp.123-135
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• 2007

This study intended to determine how price-ending types used for menu products affected consumers' price evaluation and value perception and such behavioral intentions as purchase intention and search intention. The collected data went through statistical processing, including frequency analysis, factor analysis, T-test and ANOVA using an $SPSS/PC^+$ 12.0 statistical package. The results can be summarized as follows: First, as for differences in internal reference price by ending, internal reference price was lower if menu ending was an odd number than it was an even number, which indicates that consumers tend to consider the price of the menu products to be lower if the ending of menu products is an odd number. Second, menu price-ending was found to have significant differences on consumers' purchase intention, search intention, and value perception. But the results of two-way ANOVA showed that price ending by restaurant types had no effect on consumers' search intention and restaurant type. This study suggested a desirable external reference price-ending type for menu products as one of sales promotion strategies to menu products planners and drew up a concrete plan to determine which price-ending type is useful by consumers' personal properties.

• Industrial Engineering and Management Systems
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• v.11 no.1
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• pp.30-38
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• 2012

This paper discusses a clearance pricing on daily perishable products considering a reference price of consumers. The daily perishable products are sometimes sold at a discount price before closing time to stimulate demand when the number of unsold products is more than initially envisioned. The discount pricing results both in an increase of the revenue of the day and in a decrease of the disposal cost. The discounting, however, also declines a reference price of consumers which is a mental price and serves as an anchor price to judge if a current sales price is loss or gain for the consumers. An excess discounting decreases the demand for the products sold at a regular price in the future and diminishes long-term profit. This study conducts a mathematical analysis on the clearance pricing problem for a single period with stochastic variations both on demand and on the inventory level at clearance time. The expected profit function especially depends on the response of consumers to the clearing price against their reference prices. A procedure is proposed to derive an optimal clearance price when consumers are loss-neutral. A sufficient condition is shown to obtain an optimal price for loss-averse and loss-seeking consumers by an analogous procedure.

• Journal of Global Scholars of Marketing Science
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• v.9
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• pp.47-75
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• 2002

The purpose of this study is to identify the effects of reference price, price rationale and price-quality inference of consumer on the evaluation of apparel quality. The experimental materials developed for this study were a set of stimulus and response sheet. The stimuli were six print ads, which was manipulated by reference price and price rationale for a jacket of national brand. This study used a 2(reference price: offer and non offer)$\times$3(price rationale: non offer, stock disposal, sales promotion) $\times$2(price-quality inference of consumer: high and low level) between-subjects experiment. Subjects were 371 female university students. The data were analyzed by factor analysis, ANOVA and t-test. The results were as follows. First, three apparel attributes were identified: sewing/fabrics and label by factor analysis. Second, the significant interaction effects of reference price, price rationale and price-quality inference of consumer were found on evaluating quality of sewing/fabrics and label of apparel. So, reference price effect differed to depending on type of price rationale and levels of price-quality inference. Third, the significant main effect of price-quality inference of consumer existed on evaluating construction quality of apparel.

• Journal of the Korean Society of Clothing and Textiles
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• v.26 no.6
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• pp.877-888
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• 2002

Price is a product attribute, which is determined by the function of the producing cost and profit. It is also identified as one of the most important components of the marketing mix. For consumers, price is an always-existing cue, definite evaluation criteria, and easily accessible information in the purchasing process. Considering the concept of the clothing-price in a comprehensive perspective encompassing economic, psychological and marketing perspectives, a theoretical model was developed. The model includes souses and dimensions of price perception and related behaviors. Souses of price perception were: the actual retail price at selling point, the internal reference price and external reference price. The dimensions of price perception included sacrifice perception, economic value perception, inference, savings perception and price as information perception. Clothing price related behaviors that flowed these dimensions were: low price consciousness, value for money consciousness, price-quality inference, price-prestige inference, sale proneness and price mavenism. An empirical study was conducted to validate the theoretical model. A questionnaire was developed and data were collected from 680 adult women living in Seoul, Korea. Confirmatory factor analysis as well as exploratory factor analysis results showed that theorized price related behaviors were successful classifications.

• Journal of the Korean Society of Clothing and Textiles
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• v.40 no.1
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• pp.148-157
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• 2016

In this study, the notion of payment intention price was introduced and examined in relation with self-image congruence, clothing preference and two types of reference price: expected price and fair price. One hundred samples of female collegiate students participated in the group survey and responded to the instrument including variables of clothing image evaluation, clothing preference, reference price, payment intention price toward a one-piece dress as the stimulus, and ideal self-image perception. Descriptive statistics, correlations, and regressions were applied on data analysis. The results were as follow. Payment intention price was determined by clothing preference and fair price, and the explaining power of fair price was greater than clothing preference. One confirmatory path was observed that self-image congruence effects clothing preference, and then clothing preference effects payment intention price. The other confirmatory path was from expected price to fair price and fair price to payment intention price.

• Industrial Engineering and Management Systems
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• v.12 no.2
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• pp.95-102
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• 2013

It is difficult to determine an appropriate discount price for daily perishable products to increase profit from a long-term standpoint. Even if the discount pricing is efficient to increase profit of the day, consumers memorize the sales price and they might hesitate to purchase the product at a regular price the following day. The authors discussed the inventory clearance pricing for a single period in our previous study by constructing a mathematical model to derive an optimal sales price to maximize the expected profit by considering the reference price effect of demand. This paper extends the discussion to handle the discount pricing for multiple periods. A mathematical analysis is first conducted to reveal the properties on an objective function, which is the present value of total expected profits for multiple periods. An algorithm is then proposed to derive an optimal price for asymmetric consumers. Numerical experiments investigate the characteristics of the objective function and optimal pricings.

• Asia Marketing Journal
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• v.14 no.1
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• pp.53-81
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• 2012

Constructing attractive bundle offers depends on more than an understanding of the distribution of consumer preferences. Consumers are also sensitive to the framing of price information in a bundle offer. In classical economic theory, consumers' utility should not change as long as the total price paid stays same. However, even when total prices are identical, consumers' preferences toward a bundle product could be different depending on the format of price presentation and the locus of price discount. A weighted additive model predicts that the impact of a price discount on the overall evaluation of the bundle will be greater when the discount is assigned to the more important product in the bundle(Yadav 1995). Meanwhile, a reference dependent model asserts that it is better to assign a price discount to a tie-in component that has a negative valuation at its current offer price than to a focal product that has a positive valuation at its current offer price(Janiszewski and Cunha 2004). This paper has expanded previous research regarding price discount presentation format, investigating the reasons for mixed results of prior research and presenting new mechanisms for price discount framing effect. Prior research has hypothesized that bundling is used to sell a tie-in component with an offer price above the consumer's reference price plus a focal product of the same offer price with reference price(e.g., Janiszewski and Cunha 2004). However, this study suggests that bundling strategy can be used for increasing product's attractiveness through the synergy between components even when offer prices of bundle components are the same with reference prices. In this context, this study employed various realistic bundle sets with same price between offer price and reference price in the experiment. Hamilton and Srivastava(2008) demonstrated that when evaluating different partitions of the same total price, consumers prefer partitions in which the price of the high-benefit component is higher. This study determined that their mechanism can be applied to price discount presentation formats. This study hypothesized that price discount framing effect depends not on the negative perception of tie-in component with offer price above reference price but rather on the consumers' perceived consumption benefit in bundle product. This research also hypothesized that preference for low-benefit discount mechanism is that perceived consumption benefit reduces price sensitivity. Furthermore, this study investigated how consumers' concern for quality in a price discount--a factor not considered in previous research--influences price discount framing. Yadav(1995)'s experiment used only one magazine bundle of relatively low quality uncertainty and could not show the influence of perceived uncertainty of quality. This study assumed that as perceived uncertainty of quality increases, the price sensitivity mechanism for assigning the discount to low-benefit will increase. Further, this research investigated the moderating effect of uncertainty of quality in price discount framing. The results of the experiment showed that when evaluating different partitions of the same total price and the same amount of discounts, the partition that discounts in the price of low benefit component is preferred to the partition that decreases the price of high benefit component. This implies that price discount framing effect depends on the perceived consumption benefit. The results also demonstrated that consumers are more price sensitive to low benefit component and less price sensitive to high benefit component. Furthermore, the results showed that the influence of price discount presentation format on the evaluation of bundle product varies with the perceived uncertainty of quality in high consumption benefit. As perceived uncertainty of quality gradually increases, the preference for discounts in the price of low consumption benefit decreases. Besides, the results demonstrate that as perceived uncertainty of quality gradually increases, the effect of price sensitivity in consumption benefit also increases. This paper integrated prior research by using a new mechanism of perceived consumption benefit and moderating effect of perceived quality uncertainty, thus providing a clearer explanation for price discount framing effect.